Raising Funds for Your Nepal Startup: Options, Process & What Investors Look For

Raising capital for a startup in Nepal is both easier and harder than many founders expect. Easier because the ecosystem is growing and serious investors are actively looking. Harder because the market is still small and many founders are not well-prepared for the process.

For early-stage funding, the most common sources are personal savings and family investment, commercial bank loans (typically secured against collateral), and angel investors. Nepal's angel investing community is small but active, particularly for tech and consumer businesses.

At the growth stage, options expand to include private equity, venture capital, development finance institutions (such as those linked to IFC or ADB programmes), and government schemes such as the Startup Nepal initiative.

Foreign investment is permitted in many sectors under the Foreign Investment and Technology Transfer Act (FITTA) 2075. The process requires approval from the Department of Industry (DIPP) and, where dividend repatriation is involved, the Nepal Rastra Bank.

What investors in Nepal want to see is consistent regardless of the funding source: a credible business plan with realistic financial projections, a capable and committed team, evidence of early traction or market validation, a clear explanation of what the funds will be used for, and a realistic exit or return pathway.

The most common reasons a Nepal startup investment pitch fails are unrealistic financial projections, vague use of funds, and founders who cannot clearly explain their competitive advantage. These are all addressable with good preparation.

If you are preparing to raise funds, we can help you build an investor-ready pitch deck, financial model, and supporting documentation. Book a free initial consultation to get started.